MUMBAI: The stock markets closed on a strong footing on the first day of the new financial year FY27, with benchmark indices witnessing a broad-based rally across sectors, even as underlying geopolitical tensions continue to keep investors cautious. The Nifty 50 index closed at 22,679.40, gaining 348 points, or 1.56 per cent, while the BSE Sensex ended at 73,134.63, up by 1,186 points, or 1.84 per cent.
Market participants remained optimistic during the session, supported by improving global cues and easing crude oil prices. However, experts noted that markets remain sensitive to ongoing geopolitical developments, particularly in West Asia.
Ajay Bagga, a banking and market expert, said, “Today’s session offered returning though cautious optimism. Asian markets rose on easing geopolitical sentiment, and Europe followed suit with healthy gains. Back home, the breadth was impressive — 14 of 15 sectors closed in the green, signalling genuine underlying confidence in Indian equities. However, profit booking at the higher levels was expected and, frankly, rational — smart money doesn’t overstay a rally ahead of uncertainty. And that uncertainty has a name: President Trump’s address to the nation tomorrow morning”.
He added, “Markets globally will be parsing every word for signals on withdrawing the US from the Iran war. Expectations are high of a US withdrawal but will Iran, Israel play ball. The world is waiting for Trump…”.
On the sectoral front, almost all indices on the NSE closed in the green. Nifty PSU Bank emerged as a top gainer, rising 3.90 per cent, followed by Nifty Media, which gained 3.69 per cent. Nifty Auto index surged 1.97 per cent, while Nifty IT rose by more than 2 per cent. Nifty Consumer Durables also gained 1.92 per cent. However, Nifty Pharma was the only sector to close in the red, declining by 0.99 per cent.
In the commodities market, Brent crude prices were on a downward trend, currently trading at USD 103 per barrel, though prices are still high compared to long term average.
Vinod Nair, head of research at Geojit Investments, said “Broad-based buying lifted benchmark indices, with mid- and small-cap stocks outperforming large caps, aided further by a stabilising rupee and softening crude oil prices. Sectoral rotation from defensives toward cyclicals was evident, with banking, chemicals, metals, and realty emerging as the key outperformers of the session,”.
Gold prices continued to rise, with 24 karat gold trading at Rs 1,52,136 per 10 grams. Silver prices were also higher, trading at Rs 2,39,566 per kg.
Asian markets also witnessed a strong rally on Wednesday. Japan’s Nikkei gained more than 4 per cent to 53,530, while Taiwan’s weighted index rose by more than 4.3 per cent to 33,174. South Korea’s KOSPI surged 7.78 per cent to 5,478 level, Hong Kong’s Hang Seng index gained 2 per cent to 25,293 level, and Singapore’s Straits Times index rose 1.85 per cent to 4,975. (ANI)
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